2. Identify ways in which
product lines can be
organized.
Product Line – group of closely related products manufactured
by a business
Product Item – specific model, brand, or size of a product
within a line
Ex: P&G has over 250 products within 21 product lines
Dish care is a product line
Cascade, Dawn, Joy, & Ivory are items
3. Describe product mix
dimensions.
Product Mix – All the types of products a company
makes or sells
Some companies have different brands for
different markets
Coca-Cola has different drinks for sparkling
beverages, water, juice, performance, coffee,
tea, and international flavors.
4. Identify reasons that a
business would offer a narrow
product mix.
Product Width – number of different product lines
CONTRACTING
Ease on management
Cost effective
Simplicity
Consistency
5. Identify reasons that a
business would offer a broad
product mix.
Product Width – number of different product lines
EXPANDING
Reach all markets
Competitive advantage
Ex: Red Lobster specializes in seafood, but
offers chicken and steak to broaden their
product mix.
6. Identify reasons that a
business would offer a deep
product mix.
Product Depth – number of items
offered within each product line
EXPANDING
Variety
Quantity
Ex: Kohl’s carries various quantities
of sizes, colors, & styles of Levi
Jeans.
7. Identify reasons that a
business would offer a
shallow product mix.
Product Depth – number of items offered within
each product line
CONTRACTING
Cost effective
Satisfy small markets
Ex: Only 2 chicken items on Red Lobster’s
menu.
8. Explain the importance of a
business’s product mix.
Businesses must plan their product mix
carefully because they cannot offer all the
products that customers may want.
They should be a profitable market for
product offered by a company
9. Describe alteration product-
mix strategies.
Alteration of Existing Products:
Improve an established product
with new design, new package,
new uses.
Ex: Jeep offering 4 doors
10. Describe trading up / down
product-mix strategies.
Trading up: Adding a higher-priced
product to a line to attract a higher-
income market and improve the sales of
existing lower-priced products.
Trading down: Adding a lower-priced item
to a line of prestige products to encourage
purchases from people who cannot afford
the higher-priced product, but want the
status.
11. Describe positioning product-
mix strategies.
Positioning – actions marketers take to
create a certain image of a product in the
minds of the customers
• In Relation to a Competitor
• In Relation to a Product Class or Attribute
• In Relation to a Target Market
• By Price and Quality
• Difficult to change
